AngioDynamics (NASDAQ: ANGO) provides
medical devices used by interventional radiologists and surgeons for the minimally invasive treatment of cancer and peripheral vascular disease. The firm's oncology product line includes image-guided radiofrequency ablation devices, used to kill cancer cells by heating and destroying them. The peripheral vascular line includes a variety of instruments to clear and drain non-cardiac arteries. The company's products are sold in more than thirty countries. Competitors include Johnson & Johnson (NYSE: JNJ) and Boston Scientific (NYSE: BSX).
The firm pleased investors late last month, when it reported fiscal Q4 EPS of 41 cents and revenues of $46.8 million. Analysts had been looking for 17 cents and $45.6 million. Management also guided FY09 EPS to 68 cents (64 cent consensus) and FY09 revenues to $205-$210 million ($201.32M consensus).
The stock
popped through 50-day moving average resistance on the news and has since moved into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.
Brokers recommend the issue with two "strong buys", two "buys" and three "holds". Analysts expect a 34% growth rate, through the next year. The ANGO PEG ratio (1.12), Price to Sales ratio (2.18), Price to Book ratio (1.02), Price to Free Cash Flow ratio (18.89), Sales Growth rate (14.43%) and EPS Growth rate (241.67%) compare favorably with industry, sector and S&P 500 averages. About 89% of the outstanding shares are held by institutional investors. Over the past fifty-two weeks, the stock has traded between $9.80 and $21.69. A stop-loss of $13.90 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.
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